Describing capital projects as the "central element'' of this year's Budget, Finance Minister Eugene Cox allocated $112.3 million -- a $21.8 million increase over last year -- to "vital infrastructure for the delivery of fundamental services in education, housing and transportation''.

Capital projects account for 18 percent of the $620 million the Government will spend across the board this year. To meet this spending, Government intends to borrow an additional $50 million.

That $50 million represents an 80 percent increase in borrowing in order to meet capital project objectives over the $27.5 million borrowed last year.

Public education is the biggest beneficiary. Public schools will receive a $353.3 million infusion.

The development of the new Berkeley Institute gets $26 million of these funds, which is within the $71.2 million of total allocated funds estimated to complete the project by September 2003.

An additional $7 million will go towards completing work on middle schools and $1.7 million is slotted to continue improving school safety and reducing class sizes in primary schools.

The state-of-the-art Magistrate's Court and Hamilton Police Station are the next largest projects with a budget allocation of $6.3 million.

One million dollars will also be spent to move the St. George's Police station to a new facility at Southside.

The slow-going work at the National Sports Centre has been allocated $6 million.

"The sporting community and the general public have waited patiently for this project to conclude and the trustees have taken measures to ensure the facility is completed to international competition standards,'' said Mr. Cox in his speech.

This is the last instalment of the $19 million granted to build the sports complex.

Continued development of Southside by the Bermuda Land Development Company (BLDC) has also been given a $6 million dollar budget this year.

Another of Government's large undertakings of the next few years is the creation of the new Youth Village which is targeted for completion in 2003/2004 at a total cost of $9 million. That project is allocated $4.2 million this year in order to begin construction on a purpose-designed residential care facility for young people at risk.

The airport will get $4 million this year in order to upgrade its facilities with new approach lighting, runway upgrades, improvements to the terminal building and the beginnings of an apron replacement programme.

Works and Engineering will oversee $22.4 million in capital projects including ferry dock revamps and new public landings ($7.8 million), refurbishing the Causeway and Swing Bridge ($2.4 million) and continuing work on Pembroke Marsh ($1 million).

Six million dollars is earmarked for office improvements and relocations for public sector workers as a "continuation of Government's efforts to provide efficient and healthy work environments for our dedicated and hardworking employees.'' The Aquarium will receive $2.2 million to build an Education and Administration building and $458,000 has been allocated for design fees and drawings for a new St. George's rest home.

Preserving and enhancing open spaces was cited as the reason for the $1.5 million to be spent upgrading parks.

Several non-building projects are also included among the capital expenditures for the year.

The most costly of these projects is the $4 million allocated for first pair of the new high speed ferries.

Public transport users should cheer the fact that $3.8 million has been set aside for replacement buses.

Computers and other tech acquisitions have been allocated $3.6 million with $1 million completing the public school computers upgrade and the remainder going to Government offices.

Mr. Cox said that while capital expenditure accounts for a large chunk of the Budget, it was "thoroughly reviewed and pruned to include only essential projects''.